Brent crude futures jumped 8.3% to close at $91.05 a barrel, while West Texas Intermediate (WTI) rose 6.56% to $84.46, marking the steepest single-session gains in months.
The rally was driven by US President Donald Trump’s announcement that the United States will launch a severe retaliatory response against Iran following an attempted surprise attack on US forces.
The declaration effectively ends the fragile ceasefire that had previously capped downside risk in energy markets.
The sharp move reflects a rapid repricing of supply disruption fears, particularly regarding the Strait of Hormuz, which handles a significant portion of global oil exports.
Traders are now factoring in the potential for renewed military activity in the Persian Gulf, which could threaten tanker routes and Iranian production facilities.
The volatility underscores how quickly geopolitical sentiment can override fundamental supply-demand dynamics in the short term.